U.S. capacity to produce biofuels increased 7% in 2023
Capacity to produce biofuels increased 7% in the U.S. during 2023, reaching 24 Bgal/yr at the start of 2024, led by a 44% increase in a category the U.S. Energy Information Administration (EIA) calls “renewable diesel and other biofuels.” Other biofuels includes renewable heating oil, renewable jet fuel [also known as sustainable aviation fuel (SAF)], and renewable naphtha and gasoline.
Given continued state and federal tax incentives, regulatory policies, plant expansions, and projected new plant construction, the EIA expects U.S. biofuels production capacity to continue increasing.
Capacity gains by fuel. Capacity at U.S. producers of renewable diesel and other biofuels totaled 4.3 Bgal/yr in January 2024, 1.3 Bgal/yr more than in 2023. Fuel ethanol—primarily produced from corn kernel starch and blended with gasoline—accounts for most of U.S. biofuels production capacity. U.S. fuel ethanol production capacity increased about 2% between January 2023 and January 2024, reaching 18 Bgal/yr. U.S. biodiesel production capacity stayed essentially flat, totaling 2.1 Bgal/yr in January 2024.
Biofuel production capacity by state. Most U.S. biofuels production capacity is located in Iowa, with more than 5.4 Bgal/yr. Fourteen states located largely in the Midwest, the Gulf Coast and the West Coast regions account for 90% of U.S. biofuels production capacity.
New plants. In January 2024, biofuels producers in 22 states reported adding renewable diesel and other biofuels capacity, compared with 17 states in 2023. New plants started producing renewable diesel and other biofuels in Alabama, California, Louisiana, Pennsylvania and Washington.
Louisiana in the Gulf Coast region and California in the West Coast region each have more than 1 Bgal of renewable diesel and other biofuels production capacity. These two regions represent more than 80% of U.S. renewable diesel and other biofuels production capacity.
Biodiesel capacity increased by 3.8 MMgal/yr between January 2023 and January 2024. Even though there were new reporting plants, located in Florida and Kentucky, there were also plant closures in Georgia, Iowa, Oregon and South Carolina.
Fuel ethanol production capacity. Fuel ethanol production capacity increased by 2% in the U.S. between January 2023 and January 2024. The Midwestern states of Iowa, Nebraska, Illinois, South Dakota, Minnesota and Indiana each have more than 1.4 Bgal of fuel ethanol production capacity. This Midwest region has considerable corn production, which is the primary feedstock for fuel ethanol production.
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